Re: Stock Question?
If you buy 100 shares of Ford for $1000 (for example), you're paying $10 per share. If the stock drops to $5 a share, you don't pay anything, but your $1k investment is now worth only $500. If the stocks go up to $20 a share, then your $1k investment is now worth $2000. That's how it works in a very simple nutshell. My advice to you is to talk to some investment management companies if you don't have access to a 401k with your employer. T. Rowe Price is a very good outfit to hook up with.